SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Re-Stated
Form 10-Q/A
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996.
OR
(_) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number 0-26684
GLOBAL INTELLICOM, INC.
--------------------------------------
(Exact name of registrant as specified in its charter.)
Nevada 13-3797104
------ ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
747 Third Avenue
New York, New York 10017
-------------------------------------- -----
(Address of principal executive offices) (Zip code)
(212)750-3772
--------------------------
Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such report(s), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [_]
As of May 10, 1996, there were outstanding 3,143,203 shares of Global
Intellicom, Inc.'s common stock, par value $0.1 per share (the "Common Stock").
<PAGE>
PART I . FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
--------------------
GLOBAL INTELLICOM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS THREE MONTHS ENDED MARCH 31, 1995 AND 1996
(Unaudited)
Three months ended
March 31,
-----------------------------------
1995 1996
----------- -----------
(Restated)
NET SALES $ 8,019,558 $ 8,701,661
COST OF GOODS SOLD 7,371,595 7,330,507
----------- -----------
GROSS PROFIT 647,963 1,371,154
OPERATING EXPENSES:
Selling, shipping and general and
administrative 383,557 1,353,206
Depreciation and amortization 13,029 50,487
Amortization of intangibles 33,765 61,487
----------- -----------
430,351 1,465,180
----------- -----------
OPERATING INCOME (LOSS) 217,612 (94,026)
OTHER EXPENSES - INTEREST 71,601 157,411
INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES 146,011 (251,437)
PROVISION (BENEFIT) FOR INCOME TAXES -- (100,574)
----------- -----------
NET INCOME (LOSS) $ 146,011 $ (150,863)
=========== ===========
NET INCOME (LOSS) PER COMMON SHARE $ 0.0 $ (0.05)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,500,000 3,143,203
=========== ===========
The accompanying notes are an integral part of
these condensed consolidated financial statements.
-2-
<PAGE>
GLOBAL INTELLICOM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1995 AND MARCH 31, 1996
<TABLE>
<CAPTION>
ASSETS
December 31, March 31,
1995 1996
------------ -------------
(a) (Unaudited)
CURRENT ASSETS:
<S> <C> <C>
Cash $ 496,622 $ 2,065
Due from factor 446,424 507,169
Accounts receivable -- trade, less
allowance for doubtful accounts of
$68,265 and $83,265, respectively 135,787 34,207
Accounts receivable -- non-trade 285,933 545,069
Other receivables 92,938 109,576
Inventories 4,666,842 2,834,157
Notes receivable --stockholders 419,680 378,829
Note and loans receivable -- other 81,315 85,664
Prepaid expenses and other current assets 322,087 361,449
Deferred income taxes 180,000 280,574
------------ -------------
Total current assets 7,127,628 5,138,759
------------ -------------
PROPERTY AND EQUIPMENT -- net of accumulated
depreciation and amortization 544,275 635,736
------------ -------------
INTANGIBLE ASSETS -- net of accumulated amortization 3,462,446 3,412,223
------------ -------------
OTHER ASSETS:
Deferred offering costs 125,389 372,131
Other assets 54,093 147,847
------------ -------------
179,482 519,978
------------ -------------
$ 11,313,831 " $ 9,706,696
------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable--related party $ -- $ 200,000
Due to financial institutions 4,994,135 3,675,663
Accounts payable -- trade 1,618,091 1,228,550
Accounts and note payable -- related party 445,700 295,700
Accounts payable -- related party -- 131,601
Due on acquisitions -- current portion 422,788 512,776
Current portion of capitalized lease obligations 89,700 105,403
Income taxes payable 149,103 149,103
Accrued expenses and other current liabilities 514,562 474,415
------------ -------------
Total current liabilities 8,234,079 6,773,211
------------ -------------
LONG-TERM LIABILITIES:
Capitalized lease obligations --net of current portion 221,873 285,465
Due on acquisitions -- net of current portion 447,522 379,046
Other liabilities 80,833 65,313
------------ -------------
750,228 729,824
------------ -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY :
Preferred Stock -- $.01 par value:
Authorized -- 10,000,000 shares -- 1996
Issued and outstanding -- none -- 1996
Common stock -- $.01 par value:
Authorized -- 20,000,00 shares --1995 and 1996
Issued -- 3,143,203 shares -- 1995 and 1996 31,432 31,432
Common stock to be issued 181,753 206,753
Additional paid-in capital 2,013,224 2,013,224
Retained earnings (Deficit) 111,999 (38,864)
Treasury stock, at cost (8,884) (8,884)
------------ -------------
Total stockholders' equity 2,329,524 2,203,661
------------ -------------
$ 11,313,831 $ 9,706,696
------------ -------------
</TABLE>
(a) The balance sheet at December 31, 1995 has been derived from the
audited financial statements at that date.
The accompanying notes are an integral part of
these condensed consolidated financial statements.
-3-
<PAGE>
GLOBAL INTELLICOM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1995 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
---------------------------------
1995 1996
------------ -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss): $ 146,011 $ (150,863)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 13,029 50,487
Amortization of intangibles 33,765 61,487
Other amortization -- 22,975
Deferred income taxes -- (100,574)
Other (13,636) --
Changes in assets and liabilities:
Due from factor (1,450,226) (60,745)
Accounts receivable -- trade 1,542,492 101,580
Accounts receivable -- non-trade 94,155 (259,136)
Inventories 592,062 1,832,685
Other receivables -- (16,638)
Notes and loan receivable -- other 14,243 (4,349)
Prepaid expenses and other (124,978) (39,362)
Accounts payable trade (168,460) (398,418)
Accounts and note payable -- related party (10,400) (150,000)
Accounts payable -- related party -- 20,416
Accrued expenses and other 49,897 (49,155)
------------ -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 717,954 860,390
------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans to stockholders (43,431) 40,851
Payments of other intangibles (356,588) (87,862)
Purchases of property and equipment -- (23,270)
------------ -------------
NET CASH USED IN INVESTING ACTIVITIES (400,019) (70,281)
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred offering costs (31,849) (127,539)
Proceeds from notes payable -- related party -- 200,000
Advances on line of credit -- net (179,022) --
Due to financial institutions -- net (34,942) (1,318,472)
Payments on capitalized lease obligations -- (38,655)
------------ -------------
NET CASH USED IN FINANCING ACTIVITIES (245,813) (1,284,666)
------------ -------------
NET CHANGE IN CASH 72,122 (494,557)
CASH -- at beginning of year 36,267 496,622
------------ -------------
CASH -- at end of period $ 108,389 $ 2,065
============ =============
</TABLE>
The accompanying notes are an integral part of
these condensed consolidated financial statements.
-4-
<PAGE>
GLOBAL INTELLICOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1995 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
---------------------------------
1995 1996
------------ -------------
(Restated)
<S> <C> <C>
SCHEDULE OF NON-CASH ACTIVITIES:
Accrued deferred debt costs -- notes payable -- related party $ -- $ 29,595
============ =============
Offset of note receivable from purchase of business $ 36,748 --
============ =============
Accrued acquisition costs $ 213,999 $ 11,264
============ =============
Accrued deferred offering costs $ -- $ 94,203
============ =============
Purchase of property and equipment by capital leases $ 32,775 $ 117,950
============ =============
Common stock to be issued -- notes payable -- related party $ -- $ 25,000
============ =============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest $ 69,318 $ 123,559
============ =============
Cash paid for income taxes $ -- $ 705
============ =============
</TABLE>
-5-
<PAGE>
GLOBAL INTELLICOM. INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
A. Restated Unaudited Financial Statements
The accompanying unaudited condensed consolidated financial
statements of the Global Intellicom, Inc. (the "Company") have been prepared in
accordance with Rule 10-01 of Regulation S-X and, therefore, do not include all
information and footnotes necessary for a fair presentation of financial
position, results of operations and cash flows in conformity with generally
accepted accounting principles. In the opinion of the Company, however, the
accompanying financial statements contain all adjustments, which include only
normal recurring adjustments, necessary to present fairly the Company's
financial position as of December 31, 1995 and March 31, 1996, its results of
operations for the three month periods ended March 31, 1996 and 1995 and cash
flows for the three month periods ended March 31, 1996 and 1995. The Company's
interim results of operations are not necessarily indicative of what may be
expected for the full year. The results of operations for the three months ended
March 31, 1996 have been restated due to an error in the physical inventory
count taken as of March 31, 1996 in the amount of $300,000. Therefore instead of
net income of $29,137 on $0.01 per share as originally reported the Company has
a net loss of $150,863. or $0.05 after a benefit for income taxes of $100,574.
All notes to the condensed consolidated financial statements as well as Item 2
management's discussion and analysis of financial conditions and result of
operations have been restated.
B. Inventories
Inventories, consisting solely of finished goods are valued at the
lower of cost (first-in, first-out) or market.
C. Notes Payable--Related Party
On January 29, 1996 , the Company entered into a Commitment Agreement with
Triangle Bridge Group, L.P. ("Triangle"). Under the terms of Commitment
Agreement, Triangle agreed to loan to the Company two hundred thousand dollars
($200,000) to be evidenced by a secured promissory note of the Company bearing
interest at a rate of 6% per annum which is due and payable on August 1, 1996
(the "Triangle Note"). In consideration for the agreement by Triangle to make
this loan, the Company has paid a fee to Triangle in the form of 5,000 shares of
the Company's common stock. These shares are "restricted securities" as defined
in the Securities Act. The Triangle Note is secured by a pledge of all of the
outstanding stock one of the Company's subsidiaries. The Triangle Note provides
that an event of default thereunder (a default being defined as a failure to pay
under the Triangle Note or any related agreement, or a bankruptcy event or its
equivalent occurring with respect to the Company) which remains uncured for ten
(10) days, gives Triangle the option to convert all or any portion of the amount
outstanding under the Triangle Note into unregistered Common Stock of the
Company at $3.50 per share (the "Convertible Share"). Triangle has "piggyback"
registration rights, assignable to any third party transferee, with respect to
such Convertible Shares, and the Company has agreed to pay any registration
expenses with respect to such shares.
-6-
<PAGE>
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
On September 28, 1995 Global Intellicom, Inc. (the "Company")
purchased all of the issued and outstanding stock of National Computer
Resources, Inc. ("NATCOM") and as such NATCOM's results of operations for the
first three months of 1996 have been included in the accompanying condensed
consolidated statement of operations.
The following discussion and analysis compares the operating results
of the Company for the three months ended March 31, 1996, with the three months
ended March 31, 1995. Also included is a discussion and analysis of the
Company's financial condition and liquidity as of March 31, 1996.
THE THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED) AS COMPARED WITH THE THREE
MONTHS ENDED MARCH 31, 1995 (UNAUDITED).
Net Sales. Net sales increased 8.5% to $8,701,661 in the first three
months of 1996 from $8,019,558 in the first three months of 1995, or a $682,103
increase. The net sales of NATCOM was $789,712 in the first three months of
1996. Net sales increased as a result of a change in sales mix through
management's concentration of sales of higher margin products to the Company's
larger customers.
Gross Profit. Gross profit increased to $1,371,154 in the first three
months of 1996 from $647,963 in the first three months 1995. The gross profit
percentage increased to 15.8% from 8.1%. This improvement is due to the
following: (i) gross profits generated by NATCOM and; (ii) the aforementioned
changes in sales mix.
Operating Expenses. Operating expenses increased to $1,465,180 in the
first three months of 1996 from $430,351 in the first three months of 1995, or
an increase of $1,034,829. The operating expenses of NATCOM was $372,454. The
remaining increase of $662,375 is due to the following items. There was an
increase in salaries and related payroll expenses to support the Company's
future growth plans. Rent expense increases reflects the Company's move to newer
and larger facilities consisting of a warehouse, a configuration center and
operating offices in West Chester, Pennsylvania and executive offices in New
York City. In addition, factor fees of $56,684 were incurred. Depreciation and
amortization expenses increased as a result of the AMCOM Business Centers Corp.
acquisition.
Other Expenses. Other expenses, principally interest expense
increased to $157,411 in the first three months of 1996 from $71,601 in the
first three months of 1995. The increase is primarily the result of two factors:
(I) increased interest expense and; (ii) the amortization of deferred debts
costs. Interest expense increased due to increase in the level of outstanding
indebtedness with both the Company's factor and financial institution.
Net Income(Loss). Net loss was $(150,863) in the first three months
of 1996 as compared to a net income of $146,011 in the first three months of
1995. As a result of the factors discussed above net income (loss) per share
decreased to $(0.05) per share in the first three months of 1996 from $0.06 per
share in the first three months of 1995. The per share calculation as of March
31, 1996 and 1995 are based upon weighted average shares outstanding, of
3,143,203 and 2,500,000, respectively.
-7-
<PAGE>
FINANCIAL CONDITION AND LIQUIDITY
All of the Company's subsidiaries have entered into factoring
agreements with Century Business Credit Corporation ("Century") whereby the
subsidiaries sell to Century their trade receivables, without recourse, provided
Century approves the customers credit. The term of the factoring agreements are
one year, with automatic renewals from year to year, unless terminated earlier.
Two of the Company's subsidiaries, Amcom Business Centers Corp.
("AMCOM") and Vircom, Inc. ("VIRCOM") have entered into a Loan and Securities
Agreement as amended ("Loan Agreement") with Finova Capital Corp. ("Financial
Institution") which as amended provides for an $8,000,000 inventory
floorplanning credit line. The Company has a verbal agreement with the Financial
Institution regarding the Company's payment of its undercollateralization of the
inventory floorplanning loan which amounts to $355,000 as of the date of its
filing. The Company is being charged 3% above prime on the outstanding balance.
The Company's capitalization as of March 31, 1996 consisted of
$2,203,661 of stockholder's equity, $200,000 bridge loan and $3,675,663 of
borrowings under the inventory floorplanning loan. Operating activities provided
net cash of $860,390 in the first three months of 1996. Net loss was ($150,863).
Accounts receivable-nontrade increased ($259,136) as results of the filing for
rebates due to the Company. Inventory decreased $1,832,685 and accounts payable
trade decreased ($398,418). Investing activities used cash of ($70,281). Net
repayment of loans from stockholders was $40,851. The Company incurred costs
related to acquisitions in the amount of ($87,862). Purchase of property and
equipment amounted to ($23,270). Financing activities used cash of ($1,284,666).
The Company incurred deferred offering costs of ($127,539) offset by an increase
of $200,000 as a result of a notes payable--related party. Net borrowings from
the Financial Institution decreased by ($1,318,472).
For the three months ended March 31, 1996 three of the Company's
customers accounted for approximately 37.6% of net sales. The Company considers
its business relationships with these three companies to be good, however, the
loss of any of these accounts or a significant reduction in the purchases by
these accounts could have an adverse impact on the Company's financial results.
AMCOM has derived approximately 84% of its net sales during three
months ended March 31, 1996 from the sale of products supplied by three vendors.
One vendor, NEC Technologies ("NEC"), accounted for 81% of AMCOM's net sales for
the three months ended March 31, 1996. The loss of any of these key vendors, and
in particular NEC, could have a material adverse impact. In addition, the
Company's dependence on NEC could result in significant decrease in net sales if
NEC is not able to fill the Company's orders for products on a timely basis. The
Company has become an authorized reseller for other vendors. This reduces the
Company's dependence on NEC.
The Company does not have significant commitments for capital
expenditures as of March 31, 1996 and no significant commitments are anticipated
for the remainder of the 1996 calendar year. As of March 31, 1996, the Company
has in addition to its inventory floorplan loan, outstanding commitments to
purchase inventory which has been approved on the Company's inventory
floorplanning credit line of approximately $4,015,000.
<PAGE>
The Company has commitments to make contractual payments in
accordance with certain agreements. In accordance with the agreements relating
to the acquisition of AMCOM the Company has to pay the following amounts: (i)
$142,000 on April 18, 1996 which was paid and; (ii) a total contingent payment
based upon 1/2% of net sales (as defined) beginning April 1996, payable
quarterly during 1996 with the first quarterly payment due July 15, 1996 and
commencing January 1, 1997 monthly thereafter. The acquisition of NATCOM
requires the Company to make the following payments: (i) $100,000 at closing
which was paid; (ii) $50,000 due six months after the Closing date which was
paid;(iii) $150,000 due one year after the Closing Date; (iv) $79,000 due at the
end of next seven quarters following the one year anniversary of the Closing
Date; and (v) $80,000 following the three year anniversary due September 28,
1998. In March 1996 the purchase price was amended to include $48,678
representing amounts payable for 1995 in accordance with certain employment
and/or consulting agreements. The payments may be subject to certain adjustments
for prior income taxes due by the sellers. In connection with the February 16,
1996 settlement agreement with the Company's former outside corporate counsel
the Company agreed to pay $464,000 in full satisfaction of outside legal costs
as follows: (i) $150,000 upon signing of the Agreement which was paid and; (ii)
$314,000 promissory note payable as follows $75,000 on May 25, 1996, August 25,
1996 and November 25, 1996 and $89,000 on December 31, 1996.
The Company anticipates increased revenues as a result of the NATCOM
acquisition and additional vendor relationships described above. The Company
believes gross profits measured as a percentage of net sales will increase to
the extent that the percentage of the Company's net sales from NATCOM increases,
which historically has a higher gross profit percentage than either of the
Company's other subsidiaries. The Company expects competitive pressure on gross
profit margins in the future. Competition is based on price, breadth of product
lines, product and credit availability, delivery time and the level and quality
of technical support services provided.
On January 26, 1996, in order to meet short term cash requirements,
the Company borrowed $200,000 from a limited partnership whose general partner
is a corporation controlled by a Director and Stockholder of the Company. The
loan ("Bridge Loan") is evidenced by a promissory note bearing interest at 6%
per annum and is due and payable on August 1, 1996. The date has been extended
by agreement to October 31, 1996. The note is convertible, upon the occurrence
of an event of default thereunder, at the sole discretion of the borrower at a
rate of $3.50 per share of unregistered common stock. The note is collateralized
by the common stock of NATCOM.
On April 5, 1996 the Company issued 15,000 shares to two directors of
the Company at $3.00 per share representing compensation for services rendered
in connection with obtaining future financing for the Company.
During the months of April and May, 1996, four directors and one
shareholder advanced approximately $500,000 to the Company, to meet short term
cash requirements, in return for one-year promissory note at 10% and a total of
28,020 warrants, exercisable over two years at $5.25 per share.
On June 26, 1996, the Company issued a 90-day $500,000 convertible
subordinated promissory note to Inabata America Corporation ("Inabata Note").
The Inabata Note bears interest at 2% per month which is payable on the 1st day
of each month commencing August 1, 1996. The Inabata Note may be converted into
common stock at the option of the payee on or before the maturity date and for a
period of 15 business days thereafter at the exercise price equal to the lesser
of (a) the closing price per share for the Company's common stock quoted on
NASDAQ with respect to "small cap. companies" on June 26, 1996, or (b) a
discount of 25% off the bid price per share of the Company's common stock quoted
with respect to "small cap. companies" on the date of conversion.
-9-
<PAGE>
On July 9, 1996 the Company entered into an Offshore Subscription
Agreement pursuant to which Signature Equities Agency, GmbH, a broker located in
Dusseldorf, Germany, sold 140,000 shares of the Company's stock at $2.475 per
share amounting to gross proceeds of $346,500.
The Company has agreed with the former NATCOM shareholders to
distribute 15,000 shares of its common stock to said shareholders in payment of
a balance of $47,873.00 due for the first quarter of 1996 under the NATCOM stock
purchase agreement, the Dilts, Smith and Bohs Employment Agreement and the Barry
Consulting Agreement.
The Company currently anticipates its 1996 results of operations,
existing financing, and vendor relationships will meet the Company's short-term
and long-term cash requirements. To the extent the Company's growth exceeds its
resources, the Company anticipates obtaining additional credit facilities. The
Company intends to grow internally and through strategic acquisitions. The
Company is currently evaluating potential acquisitions; however, there is no
assurance that the Company will conclude any such opportunities.
Should the Company's cash flow from operations be insufficient to
meet all of its requirements, the Company would seek additional capital through
the issuance of stock or debt in the public markets or some form of private
financing. The Company is presently considering various activities to raise
additional equity or convertible debt during the second quarter of 1996 to: (i)
increase cash flow both short and long-term; (ii) fund the growth management
anticipates for 1996; and (iii) to provide funds, as necessary, for strategic
acquisitions.
Inflation. The impact of inflation on the Company's operations has
not been significant to date. There can be no assurance that a high rate of
inflation in the future would not have an adverse effect on the Company's
operations.
PART II. OTHER INFORMATION
Items 1 through 6 are not applicable.
-10-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Date: August 13, 1996
GLOBAL INTELLICOM, INC.
By /s/ Howard Maidenbaum
------------------------
Howard Maidenbaum
Executive Vice President
By /s/ Anthony R. Cucchi
------------------------
Anthony R. Cucchi
President
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000946355
<NAME> GLOBAL INTELLICOM, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 486,622
<SECURITIES> 0
<RECEIVABLES> 688,852
<ALLOWANCES> (83,265)
<INVENTORY> 2,834,157
<CURRENT-ASSETS> 5,138,759
<PP&E> 635,736
<DEPRECIATION> 50,487
<TOTAL-ASSETS> 9,706,696
<CURRENT-LIABILITIES> 6,773,211
<BONDS> 0
0
0
<COMMON> 2,251,409
<OTHER-SE> (47,748)
<TOTAL-LIABILITY-AND-EQUITY> 9,706,696
<SALES> 8,701,661
<TOTAL-REVENUES> 8,701,661
<CGS> 7,330,507
<TOTAL-COSTS> 1,465,180
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 157,411
<INCOME-PRETAX> (251,437)
<INCOME-TAX> (100,574)
<INCOME-CONTINUING> (150,863)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (150,863)
<EPS-PRIMARY> (0.57)
<EPS-DILUTED> 0
</TABLE>
